Australia, US, and China Compete in Global Lithium Supply Chains
Australia leads global lithium production with 36% market share, primarily exporting to China. The US aims to establish a domestic supply chain, while China controls most refining and battery production. The market faces price volatility and competition among these nations, with projections indicating a growing demand for lithium by 2030.
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Australia accounts for 36% of global lithium production, mainly from hard rock mines in Western Australia, with export volumes peaking at 445,400 tonnes in September 2025. Approximately 94% of this is sent to China for processing.
The Australian government supports domestic refineries, like Covalent Lithium in Kwinana, aiming to increase export value from $4.6 billion to $6.6 billion by 2027. China controls 65% of lithium refining and 80% of battery cell production, while the US, through the Inflation Reduction Act, seeks to reduce imports by developing projects like Thacker Pass in Nevada. The lithium market faces challenges from price volatility and competition, with a projected demand of 1.3 million tonnes by 2030.
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